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The Communiqué News

Zara, a subsidiary of the world's largest retailer Inditex, has filed a complaint against the Los Angeles-based fashion label Thilikó, LLC, accusing it of copyright infringement, false advertising, and deceptive trade practises under New York state law. Zara claims that the brand lies about the origin and source of its clothing and accessories.


Swati Bhat

Courtesy: Inditex media room


On January 4, the group filed a lawsuit in federal court in New York, accusing Thilikó of passing off its products as its own. Thilikó is accused of purchasing Zara products, removing the labels, replacing them with their own, and selling them for significantly higher prices.

The marketing and labels give the impression that the products are designed and manufactured by Thilikó before being sold via its own e-commerce website and other retailers.

Thilikó is also accused of misusing copyrighted photos published on Zara's website, in violation of the website's policy prohibiting the use and alteration of materials without permission.

Zara has previously been accused of stealing products from luxury and high-end brands. Nonetheless, Thilikó positions itself as a socially responsible and committed brand that provides sustainable clothing, which Zara calls false.

Zara is now seeking monetary damages as well as injunctive relief to prevent Thilikó from stealing products and images. The defendants' conduct, according to the group, is ongoing and "undoubtedly" includes additional copyright infringements that have not yet been disclosed.

However, it is also possible that the brand obtains the goods from third-party manufacturers who copy Zara items without informing the brand.



Spanish fashion retailer Inditex said Tuesday it would sell its business in Russia, seven months after the Zara-owner halted its operations in the country following the invasion of Ukraine. "Inditex has reached an initial agreement for the sale of its business in the Russian Federation to Daher group, which has prominent interests in the retail and real estate industry," Inditex said in a statement. "The terms of the transaction, subject to government approval, will enable the preservation of a substantial number of jobs generated by Inditex Group in Russia, as it includes the transfer of most of the lease contracts related to stores," it added.


Swati Bhat

Inditex decided in March to shut its 502 stores in Russia, one of its biggest markets after Spain, accounting for 10 percent of company sales. It followed in the footsteps of some of the biggest Western brands which also suspended their operations in Russia, including Inditex's main rival H&M, following the invasion of Ukraine and the imposition of economic sanctions. Inditex said the sale of its business to Daher group "will mean the termination" of its operations in Russia. "If in future Inditex considers that new circumstances allow the return of the Group's brands to this market, Inditex and the Daher group have the option of a potential collaboration through a franchise agreement," the statement added.

> Inditex, which also owns Massimo Dutti and other brands, posted a net profit of 1.8 billion euros in the first six months of 2022, a 41-percent increase from the same period last year.



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